Shares of Alcon Inc. (ALC) tumbled 5.4% in pre-market trading on Wednesday following the release of disappointing first-quarter 2025 results and a reduction in full-year guidance. The Swiss eye care company's performance fell short of analyst expectations, raising concerns about its near-term growth prospects.

Alcon reported first-quarter core diluted earnings per share of $0.73, missing the consensus estimate of $0.75 and declining from $0.78 in the same period last year. Revenue for the quarter came in at $2.45 billion, slightly below the expected $2.51 billion. While this represented a marginal increase from $2.44 billion a year earlier, it failed to meet market expectations.

Adding to investor worries, Alcon lowered its full-year 2025 outlook. The company revised its core operating margin guidance to 20-21% from the previous 21-22% and reduced its core diluted EPS forecast to $3.05-$3.15, down from $3.15-$3.25 previously. Alcon cited several factors impacting its performance, including a "soft US market" and increased investment in research and development. Notably, the company's updated outlook incorporates a gross tariff impact of approximately $80 million, which is expected to pressure the cost of net sales. CEO David J. Endicott expressed optimism about recent product launches, including Unity VCS and PanOptix Pro, which are expected to accelerate growth in the second half of 2025, but this was not enough to offset immediate investor concerns.